ECB Insight: Uncertainty About Inflation Outlook Leaves ECB Insiders Wondering, Too

By David Barwick – FRANKFURT (Econostream) – The crucial element of next month’s monetary policy meeting of the European Central Bank Governing Council is the inflation outlook. As Eurosystem staff gear up to make their best guesstimate amid great uncertainty, various insiders shared with Econostream reasonably similar, though still quite tentative views about medium-term prospects for price pressures in the area.

November 18, 2021

ECB’s Holzmann: 'Long Story Short, This Quantitative Easing Has to Stop'

- ECB banking system credit ‘a great deal of money with very, very market-distorting effects’ 
- The pandemic, ‘economically speaking, is over’
- See inflation plateauing rather than coming back down quickly
- Dovish Bundesbank president would be ‘somewhat problematic’

November 18, 2021

ECB’s Schnabel: Must Be Patient, But Also Watch Upside Inflation Risks

By David Barwick – FRANKFURT (Econostream) – Monetary policymakers have to be patient in the face of possibly only temporarily high inflation, but at the same time be attentive to upside risks, European Central Bank Executive Board member Isabel Schnabel said Wednesday.

November 17, 2021

EXCLUSIVE: ECB’s Wunsch: We Must Recognise That the World Has Changed in the Last Three Months

- 2023 HICP forecast likely below 2%, but realised outcome could easily be at 2%
- Must be patient, but can’t exclude that inflationary forces are quite strong and at some point require reaction
- Should recognise that our models risk underpredicting inflationary pressures
- ECB faced with ‘now-or-never’ moment; ‘this is a huge opportunity to re-anchor to 2%’

November 16, 2021

ECB Insight: TLTROs More Likely to Be Extended Than Not, ECB Insiders Indicate

By David Barwick – FRANKFURT (Econostream) – A growing market perception that the European Central Bank is likely to continue offering targeted longer-term refinancing operations (TLTROs) on somewhat less advantageous terms in a post-pandemic world stands a decent chance of becoming reality, Econostream believes.

November 15, 2021

ECB’s Knot: Need to Prepare for Upside Scenarios

By David Barwick – FRANKFURT (Econostream) – The economy is going to require considerable policy support for quite a while, European Central Bank Governing Council member Klaas Knot said Tuesday.

November 9, 2021

ECB: Medium-Term Outlook for Contact-Intensive Services Uncertain

By David Barwick – FRANKFURT (Econostream) – Contact-intensive services contributed significantly to the euro area’s economic expansion recently, but prospects beyond the near term are less certain, the European Central Bank said on Wednesday.

November 8, 2021

ECB’s Centeno: No Permanent Economic Loss from Pandemic

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Mario Centeno on Friday said the pandemic would entail no permanent economic loss and the global economic system would quickly recover.

November 5, 2021